How does fiscal policy affect the cryptocurrency market: A case study of Russia's new regulations

The core of fiscal policy is for the government to regulate and guide the national economy through two main tools: taxation and public expenditure. However, this traditional policy faces new challenges in the era of digital assets.

On December 27, 2022, the U.S. Department of the Treasury and the IRS issued final regulations targeting digital asset brokers, bringing DeFi platforms into the tax reporting system.

01 Framework and Tools of Fiscal Policy

Fiscal policy refers to the set of decisions by the government to influence the economy through taxation and public spending. It is a complex combination of policy tools designed to regulate economic fluctuations, promote social fairness, and maintain macroeconomic stability.

In the economic sphere, the core of fiscal policy is to ensure that the national budget system provides a solid fiscal foundation. It involves defining key elements such as the scope of taxpayers, taxable items, tax types and rates, and tax incentives, while also focusing on the fairness and balance of tax burdens.

In the emerging field of cryptocurrency, the challenge for fiscal policy is how to incorporate decentralized, cross-border digital assets into the existing tax system. This requires adjusting tax regulations, updating collection methods, and establishing international cooperation frameworks.

02 Global Regulatory Trends: Policy Implementation and Market Response

Globally, major economies are accelerating the implementation of fiscal policies related to cryptocurrencies.

The United States has taken an important step. The final regulations issued by the Department of the Treasury and the IRS explicitly require digital asset service providers to report transaction information.

While these regulations do not create new types of taxes, they mandate brokers to report total gains from digital asset sales using Form 1099, placing DeFi platforms under the same information reporting rules as securities brokers.

Russia has officially established a taxation framework. The law signed by President Putin clearly defines digital currencies as property and creates a corresponding tax system. Digital currencies obtained through mining are regarded as physical income, with their value determined by market quotes.

This law stipulates that the mining and sale of digital currencies are not subject to VAT, but operators of mining infrastructure must report service information to tax authorities.

Tax policies show differences. In Russia, there is a progressive personal income tax rate: 13% for income up to 2.4 million rubles, and 15% for the amount exceeding that. Corporate income tax on digital currency mining is levied at a standard rate of 25% starting from 2025.

Regarding VAT, the Federal Tax Service of Russia explicitly states that taxpayers choosing the 5% or 7% preferential rate must apply it continuously for 12 quarters, without switching to the standard 20% rate in between.

Table: Comparison of Cryptocurrencies Tax Policies in the US and Russia

03 Market Response and GateToken Performance in Real-Time

Against the backdrop of tightening fiscal policies, the market performance of GateToken warrants attention. As of December 11, 2025, the price of GT/USD shows the following characteristics:

Short-term price fluctuations: According to real-time data from Gate.io, the latest quote is $10.51, up $0.66 in 24 hours, a 6.70% increase. The daily price fluctuated between $9.78 and $10.65.

Medium-term trend: Although there was a short-term increase, over the past month, GateToken’s price has fallen by 10.23%, and since the beginning of the year, the total decline has reached 37.03%, showing a clear adjustment trend.

Trading activity: 24-hour trading volume reached 7.85 million, with a market cap of approximately $846 million, ranking 70th among all cryptocurrencies.

These data indicate that even under macroeconomic tightening, the cryptocurrency market maintains high trading activity, as market participants seek new investment balances amid policy adjustments.

04 Investor Strategies in the New Policy Environment

Faced with comprehensive government intervention in the cryptocurrency sector, investors need to adopt new strategies to adapt to these changes.

Tax compliance becomes significantly more important. The new regulations in the US mean more transactions will be recorded and reported to tax authorities, requiring cryptocurrency investors to keep more complete and accurate transaction records.

In Russia, if mining infrastructure operators fail to report information to tax authorities on time, they may face fines of 40,000 rubles. This enforcement mechanism will push market participants to pay greater attention to compliance issues.

Investors should start factoring tax costs into their investment decisions. For example, Russia imposes a personal income tax rate of 13%-15% on digital currency trading income, which should be considered when calculating potential returns.

At the same time, investors need to monitor international policy coordination trends. Different handling of cryptocurrency taxation policies across countries may create new regulatory arbitrage opportunities but also increase the complexity of cross-border transactions.

05 Industry Outlook and Policy Direction Predictions

As the new US administration tends to support the development of cryptocurrencies, future policies may see adjustments. Executive orders signed by Trump explicitly endorse the crypto industry, which could lead to some reporting requirements being relaxed or modified.

Some policymakers believe that the reporting regulations by the US Department of the Treasury “represent an overreach of the IRS,” and warn that these rules may “trigger a wave of new digital asset returns, overwhelming IRS resources.”

Nevertheless, the fundamental regulatory direction for cryptocurrency in fiscal policy has been set. The industry is gradually moving from the “gray area” toward normalization and transparency.

Going forward, international coordination of tax policies will become a key issue. Variations in national policies could influence the flow and scale of global digital assets, with major economies possibly strengthening cooperation to address tax challenges posed by cryptocurrencies.

Future Outlook

As of December 11, 2025, Russia’s taxation law has come into effect, and reporting requirements for centralized platforms in the US are also underway. When cryptocurrencies are no longer just the playthings of tech enthusiasts but are recognized as property and tax bases with clear valuation on government ledgers, the entire industry’s compliance costs are being systematically reshaped.

This not only affects the price fluctuation range of GateToken but, more importantly, sets a narrowing policy track for the $7.85 million worth of GT traded daily worldwide.